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DECREE No

DECREE No.47-CP OF MAY 3, 1997 ON THE SETTLEMENT OF COMPENSATION FOR DAMAGE CAUSED BY STATE OFFICIALS, EMPLOYEES OR COMPETENT PERSONS OF LEGAL PROCEEDINGS AGENCIES

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Civil Code of October 28, 1995;

At the proposal of the Minister-Chairman of the Government Commission on Organization and Personnel and after consulting the President of the Supreme People�s Court and the Chairman of the Supreme People�s Procuracy,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- State agencies and agencies conducting legal proceedings shall have to compensate for damage caused by their officials, employees or competent persons who are on duty or performing the tasks of investigation, prosecution, trial or enforcement of judgements as prescribed in Articles 623 and 624 of the Civil Code.

Article 2.- A State official, employee or a competent person of the agency conducting legal proceedings who causes damage shall have to pay the damages paid by his/her agency or the agency conducting legal proceedings to the victim.

Article 3.- The victimized party is entitled to request the State agency or the legal proceedings agency to compensate for damage caused to it by the official, employee or competent person of such agency or request the Court to protect its legitimate rights and interests.

Article 4.- In this Decree, the terms shall be construed as follows:

1. The State agency is the agency or organization that manages and employs State officials and employees.

2. A State official or employee is a person on the State payroll who receives salary or wage paid by the State budget.

3. The legal proceedings agency is the agency that performs the functions and tasks of investigation, prosecution, trial and enforcement of verdicts.

4. The competent person of the legal proceedings agency is a person with competence to conduct investigation, prosecution, trial and enforcement of verdict.

Article 5.-

1. The principles for determining the damage, level of compensation and reimbursement as well as the exemption, reduction or deferment of reimbursement shall comply with the provisions of the Civil Code.

2. In cases where the damage is caused by more than one State officials, employees or competent persons of the agency conducting legal proceedings, they shall bear joint responsibility on the basis of their respective faults.

Chapter II

COMPENSATION SETTLEMENT AND REIMBURSEMENT

Section I. COMPENSATION FOR DAMAGE

Article 6.-

In cases where the victimized party directly requests the State agency or the agency conducting legal proceedings to compensate for damage caused by its official, employee or by the competent person of the agency conducting legal proceedings, the compensation shall be settled in accordance with the provisions of Article 7 to Article 11 of this Decree.

In cases where the parties fail to agree on the compensation for damage or one of the parties fails to strictly abide by the agreement, the parties shall have the right to request the settlement by the Court.

Article 7.- The Head of the State agency, the Head of the agency conducting legal proceedings mentioned in Article 4 of this Decree shall set up a Council for examination and settlement of compensation for damage caused by its official or employee or the competent person of the agency conducting legal proceedings (referred to as the Council for examination and settlement of compensation for damage) within 15 days after the victimized party requests the compensation.

Article 8.- The Council for examination and settlement of compensation for damage is composed of representatives of the leading board and the Trade Union of the agency of the person causing damage, the representatives of the financial and pricing agency, the relevant specialized scientific and technological agency and the judicial agency of the same level.

The representative of the leading board of the agency of the person causing damage shall act as the Council�s Chairman.

Article 9.- The Council for examination and settlement of compensation for damage shall have to consider, evaluate the extent of damage; determine the civil liabilities of the parties involved so as to propose the Head of the State agency or the Head of the agency conducting legal proceedings to decide the level and mode of compensation for damage.

The agency of the person causing damage shall bear all the exepenses generated by the activities of the Council for examination and settlement of compensation for damage.

Article 10.- The Council for examination and settlement of compensation for damage shall meet and proceed in the following order: The Chairman of the Council announces the participants and apppoints a secretary; the Council listens to the victimized party�s request for compensation and explanations of the person causing damage; the Council listens to the examination reports of the specialized agencies (if any); the Council discusses and makes decision by majority votes. The Council�s proposal shall be made in writing and sent to the Head of the competent agency for consideration and decision.

If necessary, the Chairman of the Council may invite the victimized party or its representative to attend the Council�s meeting.

The Council shall be automatically dissolved after fulfilling its duties.

Article 11.- The Heads of the State agency and the agency conducting legal proceedings shall have to settle the compensation within 45 days after the victimized party requests the compensation.

Section 2. REIMBURSEMENT OF COMPENSATION

Article 12.- The State official, employee or competent person of the agency conducting legal proceedings shall have to reimburse the money paid by his/her agency to the victimized party. The reimbursement amount shall be decided by the Head of that agency on the basis of the proposal of the Council for examination and settlement of damages as prescribed in Articles 14, 15 and 16 of this Decree.

Article 13.- After paying compensation to the victimized party, the Head of the State agency or the agency conducting legal proceedings mentioned in Article 4 of this Decree shall set up a Council for the consideration and settlement of damages.

Article 14.- The Council for examination and settlement of damages is composed of a representative of the leading board of the agency of the person causing damage acting as its Chairman, the President of the agency�s trade union, the direct manager of the person causing damage, the chief accountant, a number of experts from specialized scientific-technological and judicial branches concerned.

Article 15.- The Council for examination and settlement of damages shall assist the Head of the involved agency in examining and evaluating the damage, determining the extent of faults and economic capability of the State official, employee or competent person of the agency conducting legal proceedings and suggest to the Head of the agency the level and mode of compensation.

The agency setting up the Council for considering the compensation shall bear all the costs of the Council�s activities.

Article 16.- The Council for the consideration and settlement of damages shall meet and proceed in the following order: The Chairman of the Council announces the names of participants and appoints a secretary; the Council listens to the explanation of the person causing damage; the Council listens to the opinions of the President of the agency�s Trade Union and opinions of the direct manager of the person causing damage and the chief accountant; the Council discusses and makes decision by majority votes. The Council�s proposals shall be made in writing and sent to the leading officials of the competent agency for consideration and decision.

The Council shall be automatically dissolved after fulfilling its duty.

Article 17.- The State official, employee or the competent person of the agency conducting legal proceedings shall have to refund the damages to his/her agency according to the following mode: making a lump-sum reimbursement within 30 days from the date of the issue of the decision on the reimbursement or having his/her income gradually deducted at a rate not lower than 10% and not higher than 30% of his/her total incomes from monthly salary or wage (and allowances, if any).

Article 18.- If the State official, employee or the competent person of the agency conducting legal proceedings disagrees with the decision of the Head of his/her agency on the reimbursement or fails to fulfill his/her reimbursement obligation, the parties can request settlement by the Court.

Chapter III

IMPLEMENTATION PROVISIONS

Article 19.- The estimate, use and disbursement of the budget for the compensation for damage caused by State officials, employees and competent persons of the agencies conducting legal proceedings shall be decided by the Minister of Finance after consulting the Minister-Chairman of the Government Commission on Organization and Personnel.

Article 20.- The Minister-Chairman of the Government Commission on Organization and Personnel shall provide guidances for the implementation of this Decree.

The Minister-Chairman of the Government Commission on Organization and Personnel shall coordinate with the Supreme People�s Court and the Supreme People�s Procuracy in guiding the settlement of compensation for damage caused by State officials, employees or competent persons of the agencies conducting legal proceedings.

Article 21.- This Decree takes effect from May 15, 1997.

The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People�s Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

PHAN VAN KHAI